Paladin Energy Ltd · ASX:PDN
Paladin Energy — Q3 2009 Earnings Presentation
30 slides from Paladin Energy's earnings presentation, Nov 17, 2009
Slide 1: The New Energy In The Market
Paladin Energy Ltd The New Energy In The Market John Borshoff - Managing Director/CEO Garry Korte – Chief Financial Officer September 2009 Quarter Results & Investor Update 17 November 2009
Slide 2: Disclaimer
Disclaimer This presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this presentation, other than statements of historical facts, that address future production, reserve or resource potential, exploration drilling, exploitation activities and e
Slide 3: Presentation Outline
Presentation Outline • Paladin Status - Summary • Uranium Supply and Demand • Financial Review – Sept Qtr • Projects Update • Future Outlook 3
Slide 4: Paladin Status
Paladin Status an emerging Tier 1 global uranium producer Multi-staged parallel activities – developing a complete company • Sustained production - LHM Stage 1 • Ramping up production - LHM Stage 2 & KM • Expansion (immediate) - LHM Stage 3 • Expansion (mid term) - LHM Stage 4 & Stage 2 KM • Develop
Slide 5: Paladin's Suite of Uranium Properties
Paladin’s Suite of Uranium Properties staged for sequential development
Slide 6: Resources and Reserves (September 2009)
Paladin Energy Resources and Reserves (September 2009) Project Total Resources Total Reserves Attributable to Paladin 100% project basis Cut-off Cut-off ppm ppm t U3O8 Mlb U3O8 % U3O8 U3O8 t U3O8 Mlb U3O8 % U3O8 U3O8 Langer Heinrich (100%) 74,415 164.0 0.06 250 29,874 65.8 0.06 250 Kayelekera (100%)
Slide 7: Presentation Outline
Presentation Outline • Paladin Status - Summary • Uranium Supply and Demand • Financial Review – Sept Qtr • Projects Update • Future Outlook 7
Slide 8: Global Uranium Production 2000 - 2008
Global Uranium Production 2000 - 2008 Demand – remains robust Supply – static and not responding to both price and demand 130 430 120 360 50 112 315 110 50 100 90 million pounds U3O8 80 70 120 60 115 120 104.7 108.9 107.1 50 102.3 91.5 94.5 93.7 92.6 40 30 20 10 0 20 20 20 20 20 20 20 20 20 20 00 01
Slide 9: World Nuclear Capacity - Growth is Assured
World Nuclear Capacity - Growth is Assured number of reactors expected to be operating by 2030 Status as of 1 October 2009 Current Nuclear Under Construction Planned Capacity Reactors / (Capacity) 436 (372.5GWe) 52 (44.3GWe) [43] 135 (150GWe) [108] 170Mlb U3O8 required (WNA Estimate) Countries 30 13
Slide 10: Presentation Outline
Presentation Outline • Paladin Status - Summary • Uranium Supply and Demand • Financial Review – Qtr Ending 30 Sept 2009 • Projects Update • Future Outlook 10
Slide 11: Key Highlights
Key Highlights • Langer Heinrich Mine – US$38.3M revenue with gross profit of US$13.6M – 654,516lb produced – cost of sales of US$26/lb lower than 30 September 2008 quarter of US$27/lb – Stage 2 production levels close to being realised with October production of 276,757lb (90% of Stage 2 nameplate
Slide 12: Financial Performance
Financial Performance Sept 09 Jun 2009 2009 Quarter Quarter Full Year Production (lb) – LHM Stage 1 654,516 693,116 2,702,972 Production (lb) – KM 89,672 34,600 34,600 Total Production (lb) 744,188 727,716 2,737,572 Annualised (lb pa) 3.0M 2.9M 2.7M Sales (lb) 703,000 445,000 2,021,000 Average Sales
Slide 13: Income Statement
Income Statement • Group revenue of US$38.6M and gross profit of US$14.9M • Exploration expenditure of US$5.1M – US$1.2M on the Mount Isa Uranium Joint Venture – US$0.6M on Isa North Project in Queensland – US$1.1M on Angela Uranium Joint Venture in the Northern Territory • Other expenses of US$8.6M
Slide 14: Income Statement (Continued)
Income Statement (Continued) • Finance costs reduced to US$5.2M • Taxation charge of US$16M (non cash) – mainly tax effect of foreign exchange movement on translation of plant & equipment • Loss after tax of US$19.4M – impacted by non cash tax charge of US$16M 14
Slide 15: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow • Cash and cash equivalents of US$494.5M at 30 September 2009 – held with Australian banks with minimum AA rating • US$374M private placement completed to fund: – M&A opportunities – progression of LHM Stage 3 expansion – expansion of exploration and pre-development progr
Slide 16: Presentation Outline
Presentation Outline • Paladin Status - Summary • Uranium Supply and Demand • Financial Review – Sept Qtr • Projects Update • Future Outlook 16
Slide 17: Langer Heinrich – Our Flagship Project
Langer Heinrich – Our Flagship Project
Slide 18: Langer Heinrich Plant
Langer Heinrich Plant showing Stage II additions 18
Slide 19: Langer Heinrich Project
Langer Heinrich Project current status • Stage 1 – Alkaline leach, CAPEX US$100M – design 2.6Mlb pa – operating above design capacity for 5 consecutive quarters • Stage 2 - commissioning – design 3.7Mlb pa, CAPEX US$59M – design production at approximately 90% • Stage 3 - approved increase to 5.2Mlb
Slide 20: Langer Heinrich Production
Langer Heinrich Production quarter by quarter 15 months at or above design 800 700 FY08 FY09 Stage I Design 686 693 674 655 600 650 569 Production (000lb U3O8) 500 491 400 300 391 200 100 0 Q2 - Dec 07 Q3 - Mar 08 Q4 - Jun 08 Q1 - Sept 08 Q2 - Dec 08 Q3 - Mar 09 Q4 - Jun 09 Q1 - Sept 09 Financial Qu
Slide 21: Kayelekera Location Map - Malawi
Tanzania Kayelekera Location Map - Malawi Lake Malawi M26 Karonga-Chitapa Road Zambia 5 km 5 mi
Slide 22: Kayelekera Mine
Kayelekera Mine 22
Slide 23: Kayelekera Uranium Project
Kayelekera Uranium Project current status • Proving of ore feed up to 140tph to 150tph (75% of Nameplate @ 190tph) • Process well proven with no fatal flaws • Final product well within commercial specification • 700,000t of ore on ROM pad or exposed in pit • Orebody reconciliation has been excellent
Slide 24: Mount Isa Uranium Project
Mount Isa Uranium Project current status Fusion Deposits • Uranium resource now 111Mlb • Focussed metallurgical scoping test work underway • Environmental baseline work ongoing • Feasibility study to start mid 2010 VALHALLA SKAL • Ongoing lobbying of QLD Government re uranium policy • 09/10 budget A
Slide 25: Presentation Outline
Presentation Outline • Paladin Status - Summary • Uranium Supply and Demand • Financial Review – Sept Qtr • Projects Update • Future Outlook 25
Slide 26: Production Outlook
4 Year Production Outlook 15 13.8 14 Actual Forecast 13 12.8 12 Stage 3 Langer Heinrich 11 Production 10.0 10 9 8.0 8.5 9.0 Stage 4 Mlb 8 U3O8 7 6.1 6 I 5 5.6 4 2.70 3 2 1.71 1 0 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Langer Heinrich Actual Langer Heinrich Production Kayelekera Actual
Slide 27: Project Pipeline
Project Pipeline assets acquired & projects developed Stage 3 Expansion Langer Heinrich Mine LHM LHM Stage 4 Expansion Kayelekera Mine Inventory U3O8 372Mlb New production with staged organic growth 2007 to 2011 27
Slide 28: Paladin Outlook – strong growth
Paladin Outlook – strong growth • Langer Heinrich (Namibia) – fully integrate Stage 2 expansion (2.6Mlb to 3.7Mlb pa) – Stage 3 construction to commence – Stage 4 feasibility to commence • Kayelekera (Malawi) – nameplate production H2/FY10 – drilling of hot targets • Mount Isa Project (Queensland -
Slide 29: Key Takeaways
Key Takeaways • Multi-mine/multi-country operating status • Maintaining strong production profile – FY10 growth for Paladin (2.7Mlb to 5.6Mlb – 6.1Mlb) • Langer Heinrich Stage 3 expansion increasing production to 5.2Mlb pa – commissioning start up Dec qtr 2010 • Stage 4 expansion to 10Mlb by 2014 at
Slide 30: Contact Details
PALADIN ENERGY LTD Contact Details Mr John Borshoff Head Office (Managing Director/CEO) Grand Central 1st Floor, 26 Railway Rd Mobile: +61 (0) 419 912 571 Subiaco Western Australia 6008 Email: john.borshoff@paladinenergy.com.au PO Box 201, Subiaco Western Australia 6904 Mr Justin Reid Telephone: +61